Nintendo Debuts Wii U Console at Home as Handheld Sales Jump

By Naoko Fujimura -
Dec 9, 2012

Nintendo Co. (7974)’s Wii U home video-game
console debuted in Japan after sales of its 3DS handheld player
drove an expansion of the country’s video-game market in the
first half for the first time in five years.

The video-game maker’s first home console since 2006 comes
in two versions at 26,250 yen ($318) and 31,500 yen with a 6.2-
inch (16 centimeters) touch-screen controller called the
GamePad. U.S. customers bought 400,000 units in the first week
of sales that started Nov. 18, the company said Nov. 26. Japan
sales began Dec. 8.

The high-definition Wii U’s GamePad lets users wirelessly
connect to the console so characters can jump between the device
and a TV, a feature Kyoto-based Nintendo is betting will help
lure players away from smartphones and tablets. Japan, the
world’s third-largest economy, is also the fastest growing major
video-game market, as demand in the U.S. and Europe slumps.

“Nintendo has a better chance to succeed in Japan, as they
have more strongly rooted fans at home,” said Satoru Kikuchi,
an analyst at Deutsche Bank AG. Still, “success in the U.S. is
required to generate profits.”

Yodobashi Camera Co.’s store in Tokyo’s electronics
shopping district of Akihabara opened at 8 a.m. on Dec. 8, the
first day of sales, two hours earlier than usual, as about 100
people lined up to buy the Wii U.

U.S. Videogame Sales

“I’ve been waiting for this for so long, and I’m thrilled
to finally get it,” Ryoji Iriyama, 41, said after purchasing
the console and “Super Mario Bros U” software at Yodobashi
Camera. “I’m going to play this with my daughter as soon as I
get home.”

U.S. consumers spent 11 percent less on video games,
consoles and accessories in November than a year earlier, led by
fewer purchases of consoles and handheld players. Retail
spending on the products totaled $2.55 billion last month, down
from $2.87 billion a year earlier, industry researcher NPD Group
Inc. said in an e-mailed statement.

Industrywide sales of videogame machines and software
jumped 11 percent to 175.3 billion yen in Japan in the six
months ended Sept. 30, according to Enterbrain Inc. Nintendo led
the gain after boosting sales of its 3DS handheld by cutting the
price and introducing its “New Super Mario Bros. U” and Capcom
Co. (9697)’s “Monster Hunter 3 (Tri) G.”

In Japan, Nintendo may face a challenge from its own
handheld players, besides competition from smartphones and
tablet computers such as Apple Inc. (AAPL)’s iPhone and iPad, said
Tomoaki Kawasaki, a Tokyo-based analyst at Iwai Cosmo Holdings
Inc. (8707) Nintendo aims to sell 5.5 million Wii U consoles and 17.5
million 3DS players this fiscal year, it said in October.

“Nintendo must offer a very distinctive feature to
convince consumers to spend more than 30,000 yen to play with
the Wii U,” he said. “Nintendo needs to expand its range of
customers.”